GNOM vs IBBQ

GNOMDGlobal X Genomics & Biotechnology ETF

IBBQAInvesco Nasdaq Biotechnology ETF

In short

GNOM Most biotech ETFs buy the whole drug industry. GNOM buys the genome: gene editing, sequencing, genetic therapies, computational genomics. About 50 global names, one idea, no hedging.

IBBQ The broad Nasdaq biotech benchmark, bought cheap. IBBQ tracks the whole listed biotech and pharma field, roughly 300 names, for 0.19% a year, well under half the typical fee in its category.

Stated mandate

GNOM GNOM seeks to track, before expenses, the performance of the Solactive Genomics Index by investing in companies positioned to benefit from advances in genomic science, including gene editing, sequencing, genetic therapies, computational genomics, and biotechnology.

IBBQ The Fund tracks the Nasdaq Biotechnology Index and normally invests at least 90% of its assets in index constituents. The index covers Nasdaq-listed companies classified as biotechnology or pharmaceutical companies.

Why people hold it

• GNOM A genuine pure play. The index targets companies tied to advances in genomic science (gene editing, sequencing, genetic therapies), not the broad pharma complex most biotech funds hold.globalxetfs.com
• Concentrated on purpose: roughly 50 holdings, global reach. The theme drives the fund instead of being diluted by megacap drugmakers.globalxetfs.com
• Running since 2019, it is one of the older dedicated genomics baskets, with a multi-year record through a full cycle in the theme.

• IBBQ At 0.19% a year, the lowest fee among its closest biotech rivals and less than half the category median.
• Holds roughly 300 Nasdaq-listed biotech and pharma companies, so one failed trial or one blockbuster is a slice of the fund, not the whole story.invesco.com
• Rules first: normally at least 90% of assets sit in Nasdaq Biotechnology Index constituents. No manager guessing which pipeline pays off.invesco.com
• Stands in the top quartile of the biotech and genomics funds we grade, keeping company with far larger rivals like XBI and IBB.

Worth knowing

• GNOM The narrow screen costs more: 0.50% a year, against 0.44% for IBB, 0.35% for XBI and 0.19% for IBBQ, which own biotech broadly.
• Thinly traded next to the big biotech funds. Limit orders and mid-session trading matter more here than with a household-name ETF.
• Small, clinical-stage genomics names swing hard, and with about 50 holdings there is nowhere to hide. Volatility is the price of the pure theme.

• IBBQ Thinly traded next to the category's giants, so bid-ask spreads can widen. Limit orders matter more here than in a heavily traded fund.
• One sector, and a jumpy one: biotech and pharma prices move on trial data and regulatory decisions, a rougher ride than a broad-market fund.invesco.com
• Launched in 2021, so a shorter live record and a smaller asset base than the category's long-standing funds.

Full GNOM profile⁠

Full IBBQ profile⁠